in Business & Finance

Boeing details funding boom for Middle East aircraft deliveries

Posted 20 October 2014 · Add Comment

Boeing has said that commercial financial institutions in the Middle East are increasingly funding the region's record number of airplane deliveries.

Boeing forecasts that airlines in the Middle East will require 2,610 new airplanes over the next 20 years, worth an estimated $550 billion.  

While one-third of that demand – 900 airplanes – will replace today's fleets, 66 percent of the demand is expected to be driven by the rapid fleet expansion in the region. 

Tim Myers, vice president and managing director of Aircraft Financial Services for Boeing Capital Corporation, said bank funding for airplane deliveries is becoming a global industry and the Middle East is playing an increasingly significant role. 

“Last year alone, more than 65 percent of all deliveries to airlines in the Middle East were funded from within the region,” Myers said. “Over the past few years we have seen great success by Middle Eastern banks and investors providing sources of financing for the Middle Eastern carriers, but they have been expanding outside the region by providing equity, debt, Islamic Financing options and more.” 

Myers and Jeff Johnson, president of Boeing Middle East, hosted more than 180 of the region’s leading aircraft financiers and investors at its annual conference in Dubai. 

“The health of the Middle East’s air travel industry and the sustained performance of commercial aircraft assets continue to create good investment opportunities, which was well reflected in the strong attendance at our financiers and investors conference,” Johnson said. 

 “This regional growth is not expected to slow down in the near future,” Johnson added. “Dubai air traffic has been consistently growing between 5 and 7 percent annually, higher than the global average of 3.5 percent. Abu Dhabi International Airport reported a 21.7 percent year-over-year traffic increase in July, and Hamad International Airport has handled more than 2 million passengers since its opening in April. With key regional players making significant leaps in aerospace infrastructures, I have no doubt that the Middle East will continue to outpace other markets in travel industry growth for some time.” 

This traffic growth is being matched by growth in local aircraft asset financing. 

“We are particularly pleased to see increasingly greater diversification in the source of funding as airlines seek to finance these new airplanes,” Myers said.

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Helicopter woes for MINUSMA

A little-known UN mission in Mali celebrates its fourth anniversary this month. Since the deployment began, the multidimensional integrated stabilisation mission in Mali (MINUSMA) has been working to help stabilise the situation

First Air Mauritius A350 takes shape in Airbus' Final Assembly line

Assembly of the first A350 XWB for Air Mauritius is advancing well at Airbus' Final Assembly Line in Toulouse, France.

Bestfly retains ISBAO status

At EBACE this week, Angola-based aviation services company Bestfly announced that it has received confirmation it has retained its ISBAO (International Standard for Business Aviation Operators) status for the second year in a row.

New airline will boost Senegal's economy

Boosting Senegalese commercial air transport and tourism were the prime agenda items at a recent Paris conference.

Nextant Aerospace launches large cabin 604XT programme

Nextant Aerospace has announced the launch of a new cockpit avionics programme in conjunction with Rockwell Collins that will bring Pro Line Fusion to the Bombardier Challenger 604 aircraft platform.

FlightSafety International starts Master-level Advanced Training Courses for Dassault Falcon

FlightSafety International, that has a facility in South Africa, has announced the start of new Master-level Advanced Training Courses for the Dassault Falcon 2000EX EASy and 900EX EASy series aircraft.

Honneywell ADS-BSK310517
See us at
GroundHandling BT0303280917EBACE17 BT0103240517Aviation Festival BT25114617